Snakk nearly doubles annual revenue, grows by over 90%

AUCKLAND, New Zealand, 13 June
2014 – Today mobile advertising technology company Snakk
Media Ltd., (NZAX: SNK) is announcing its unaudited
preliminary financial results, with revenues from March 2013
to March 2014 increasing 92% year-on-year, from $3,654,004
to $7,029,916.

The company’s financial year ended
strongly, with fourth quarter revenues from January to March
2014 increasing 78% from the previous year’s quarter to
$1,750,331. Snakk expects to release its audited results on
or before 31 July.

The net loss after tax for the year
ending March 2014 is $1.8m, with $481,731 representing a
non-cash expensing of staff options. While the loss
increased 58% year-on-year, revenues almost doubled. Snakk
is continuing to invest to scale the business for growth,
and begins its 2015 financial year strongly with more than
$NZ6.3m in cash and cash equivalents to fund its expansion
plans.

More than 85% of Snakk’s revenues are generated
from its Australian operations, and when the adverse impact
of exchange rate fluctuation is removed from reporting, the
year-on-year growth in AUD was 117% for the full
year.

Analysts forecast mobile advertising in Australia to
grow at a Compound Annual Growth Rate (CAGR) of 39% between
2013 and 2018.

Snakk opens Singapore office
The company has stepped up its Asian expansion
with the appointment of Michael Gooch to lead its South-East
Asian operations, based in Singapore. Mr Gooch worked with
Haymarket Publishing in the UK before helping Catcha Digital
Asia expand into Singapore in 2010. Catcha Digital was
subsequently acquired by OPT Inc. in 2013, one of Japan’s
leading digital media agencies.

The company’s revenue
also continues to flow from Asia via Australian agencies
using Snakk’s smart screen advertising technologies to run
campaigns in these markets for brands such as H&M, Samsung
and HP.

Snakk Group CEO Mark Ryan says Singapore was
chosen as the company’s first Asian headquarters because
it is a significant decision gateway for the region, with a
heavy concentration of global and regional media agencies
and brands.

“Centering our operation in Asia’s
regional hub makes sense as the majority of decisions made
in Singapore directly influence other markets,” says Mr
Ryan. “We also see Singapore as an ideal launch point for
moving into other countries and regions, including Thailand,
Hong Kong, Indonesia and Malaysia.”

Group
CEO Mark Ryan comments on the year ended March 2014:

“Seeing our growth continue to accelerate
so strongly and beat the previous financial years’ gains
is a fantastic reward. We exceeded our internal forecasts by
quite a large margin, with our fourth quarter growth proving
to be another record-breaking result.

“The company is
maturing rapidly and has been carefully expanded over the
last year. We’ve committed time and investment into
securing top industry talent who continue to provide
exceptional service and outstanding client results, while
managing a dramatic increase in campaign
volumes.

“We’ve also continued to invest significant
resources into building our portfolio of best-of-breed smart
screen advertising technologies, particularly those that
target specific geographic locations and use audience data
to reach the right people at the right time. Our recent
announcement regarding our investments and partnerships with
Moasis Global and Plyfe are just the beginning of this
important long-term strategy for Snakk.”

Key
highlights from the past 12 reporting months include:

- Appointing the company’s inaugural Group
CEO, Mark Ryan (April 2013). - Opening a Brisbane office
(April 2013). - Opening a New Zealand office (May 2013).
- Raising $6.5m through a Share Purchase Plan supported
by over 1,200 shareholders and through private placements
(May 2013). - Becoming one of the first public companies
in the world to meet the rigorous social, environmental and
governance standards required to become a Certified B
Corporation or ‘B Corps’ (June 2013). - Second
quarter revenues almost tripling year-on-year at 147%
(July-September 2013). By this point, Snakk had already
generated 83% of its previous full year's revenues. -
Being ranked New Zealand’s 6th fastest-growing business on
the Deloitte Fast 50 index (November 2013) and 62nd on the
Asia Pacific Tech 500 (December 2013). These rankings were
based on the company’s audited year-on-year growth rates
calculated at 486.3% from 1 April 2011 to 31 March 2013.
- Achieving Snakk’s first million dollar revenue month
(December 2013). - Generating the biggest quarter in
Snakk’s history (October-December 2013), which was also
the first quarter the company turned a profit. -
Investing a small portion of treasury funds with the
MicroDreams Foundation in the form of an interest-bearing
loan to make a significant difference to the livelihoods and
communities of South Pacific Islanders. The Foundation
micro-finances women entrepreneurs growing small sustainable
businesses. (December 2013) - Creating a new position,
Group Commercial Manager, filled by Luke Williams (March
2014)

Looking ahead

“Our
strategy of identifying the best smart screen advertising
technology platforms to invest in - or partner with - gives
us a distinct competitive edge in Australia and New Zealand,
and will keep us at the forefront of a fast-growing and
rapidly evolving industry,” says Mr Ryan.

“As we look
to the future we intend to further capitalise on this
strategy in Asia, where the next wave of mobile advertising
growth will occur and where hundreds of millions of
consumers use smartphones. We’re confident we’re going
to make an impact in this region and build a business of
considerable value.”

Gartner predicts that from 2015 to
2017, mobile advertising growth will be fuelled strongly by
a number of factors including improved market conditions,
new targeting technologies, and a sustained interest in the
mobile medium from advertisers.

Data released in June
2014 by IAB Australia /Nielsen highlights how prevalent the
use of smartphone applications (apps) are in Asian markets
such as Indonesia, where people are spending an average of
50 hours per month using a wide variety of apps. This is
already considerably higher than the more mature markets of
USA and Japan, and more than double the monthly usage of
smartphone apps in Australia.

The rise of internet-enabled
devices bearing smart screens, as well as the number of
mobile sites, apps and games that people are using - and the
time spent using them - is increasing exponentially. This
presents enormous opportunities for Snakk in Australia, New
Zealand and across the Asia Pacific region.

Snakk AGM and
#SnakkLive 2014 event – 16 September For the second
consecutive year, Snakk Media will highlight and discuss the
key trends shaping the mobile advertising industry following
its Annual General Meeting, to be held Tuesday, 16 September
in the Sir Paul Reeves Building at Auckland University of
Technology (WG308). The AGM will start in the late afternoon
and will be followed by an early evening panel event. More
details will be released closer to the event.

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